What Is the Massachusetts ST-9 Form and How Do I File?
This guide explains the MA Form ST-9, helping businesses reconcile their annual sales and use tax payments with the Department of Revenue.
The Massachusetts Form ST-9, Sales and Use Tax Return, is the document registered vendors use to report and pay sales and use taxes to the Commonwealth. This form is for vendors who regularly collect these taxes, not for one-time filers.
Filing Requirements for Form ST-9
Any vendor registered with the Massachusetts Department of Revenue to collect sales or use tax is required to file a return. The filing frequency depends on the amount of tax the business expects to collect, which determines its filing schedule.
Vendors with an annual liability of $100 or less are permitted to file annually. Those with a liability between $101 and $1,200 for the calendar year must file quarterly returns. Businesses with tax liabilities exceeding $1,200 annually must file on a monthly basis.
For all filing frequencies, returns are due by the 20th day of the month following the close of the reporting period. For annual filers, the return is due by January 20th of the following year. Quarterly filers must submit their returns by:
- April 20
- July 20
- October 20
- January 20
Monthly filers are required to submit their returns and payments by the 20th of the month for sales made in the preceding month.
Information Needed to Complete Form ST-9
To accurately complete Form ST-9, a business must compile key financial figures from its records. The primary figure is the total gross sales, which encompasses all sales, leases, and rentals of tangible personal property within Massachusetts. This amount is the starting point for all deductions.
From gross sales, several categories of non-taxable sales must be subtracted. This includes sales for resale, where the customer provides a Form ST-4, Resale Certificate. Other subtractions include sales of services not subject to tax, sales to qualifying exempt organizations that provide a Form ST-5, Sales Tax Exempt Purchaser Certificate, and sales of goods shipped out of state.
Another component is the calculation of use tax. A use tax is owed on tangible personal property purchased for use in Massachusetts if a sales tax was not previously paid, which often applies to items from out-of-state sellers. The business must report the total value of these purchases and calculate the 6.25% use tax due.
The gathered financial data is entered onto the corresponding lines of the digital Form ST-9. For instance, total gross sales are entered on Line 1, while various exempt sales are detailed on subsequent lines before calculating the total tax.
The Filing and Payment Process
The submission of Form ST-9 and any associated payment is handled through the MassTaxConnect online portal. After logging into their account, a user navigates to their sales and use tax account and selects the option to file a return for the specific period.
The user populates the electronic Form ST-9 with the gathered financial data. After all figures have been entered, the portal automatically calculates the total tax liability. The user must then review all the entered information for accuracy before proceeding with the submission.
If there is a balance due, the portal facilitates electronic payments directly from a bank account. After submitting the return, the system provides a confirmation number that should be saved for the business’s records.
Penalties and Amending a Return
Failure to meet filing deadlines or pay tax liabilities can result in penalties. The Massachusetts Department of Revenue imposes a penalty of 1% of the unpaid tax per month, up to a maximum of 25%, for late filing or payment. Interest is also charged on any unpaid tax and penalties, calculated at the federal short-term rate plus four percentage points, compounded daily.
If a business discovers an error on a previously filed return, it must be corrected by filing an amended return. This is done by filing Form CA-6, Application for Abatement/Amended Return, not by submitting a new ST-9. This form is also filed electronically through the MassTaxConnect portal.
An amended return is necessary for errors resulting in an underpayment or an overpayment. On Form CA-6, the filer reports the figures as originally filed and provides the corrected figures. The system then calculates the difference, showing either an additional amount owed or a refund.